CHAPTER FOUR: ECONOMIC GOVERNANCE AND MANAGEMENT employment activities for unemployed entrepreneurs aged between 35 and 50 years. 435. As a result, in 2004, 70 500 youths per month were integrated as a part of the Local Salaried Employment Initiative (ESIL) and 61 000 graduates received pre-employment contracts. Furthermore, 180 000 unemployed and 190 000 workers who had been made redundant received benefits from the CNAC. 436. Tourism development. This sector represents 2.17 per cent of the global GDP and 1.64 per cent of the non-oil GDP, 34 per cent of value added from services and 87 per cent from the private sector. These past few years, the sector has grown faster than total GDP (8.3 per cent, compared with 5.6 per cent). The government has adopted a development policy for 2015, which will focus on reducing the deficit in housing infrastructure, renovating premises, improving the quality of services, and developing the training system and the promotion and communication programmes. 437. Mobilising internal resources, training and capital accumulation. National savings are quite high in Algeria and have been above 50 per cent since 2002 (53.2 per cent of the GDP in 2005). Private savings came to only 15 per cent of the GDP in 2004 (out of a total savings of 57.9 per cent). Public savings are clearly dominant and come from oil earnings. The surplus was deposited with the FRR (DA2831 billion, equivalent to US$40 billion, at the end of December 2006) and went towards financing capital debt repayment and treasury deficits. 438. Gross investments remained stable at 22.1 per cent in 2005. Stimulated by tax incentives, private savings gradually came on board and helped develop a debenture market. The financial banking and insurance sector collect these savings but results are not very diversified. Bank liquidity improved due to restructuring of non-productive credits held in public enterprises: the ratio went from 49 per cent in 2000 to 61 per cent in 2004. The dinar was subjected to exchange rate control. The exchange rate is now stable and this has affected the parallel foreign exchange market. It is recommended that the Central Bank of Algeria render the bureaux de change more effective by giving the primary banks the responsibility for managing their foreign exchange portfolios. There should be no difference in foreign exchange transactions, whether one is importing services, invisibles or merchandise. 439. Vulnerability to internal and external shocks. The Algerian economy is highly exposed to external shocks, especially the fluctuation of oil prices. The government is quite vocal about its commitment to diversify exports in order to break the numerous dependencies on oil production, income and exports, which came to 53 per cent, 52 per cent and 93 per cent respectively in 2005. The economy is vulnerable to internal shocks, especially climate changes that affect agriculture and the importation of cereals, added value from the primary sector and employment, and so on. 141